12 crypto startups in Japan to know in 2024

Japan’s thriving blockchain sector showcases balanced inventiveness and regulation, fostering the growth of startups like PassPay and Emurgo while driving global adoption.

Japan has established itself as a leader in the cryptocurrency, web3, and blockchain sectors, perfectly balancing regulations with innovation. Since recognizing Bitcoin as a legal form of payment in 2017, the country has consistently refined its approach to digital assets, allowing the crypto sector to thrive. 

Japan’s adoption of cryptocurrency is expected to remain the highest in the world, and the number of daily crypto traders is expected to reach 500,000 by the end of 2024. This aligns with Japanese crypto enthusiasts showing a strong preference for established, large-cap coins like Ethereum and Bitcoin. 

However, crypto expert Yamada states in this Business 2 Community report that there are a whole host of alternative blockchain investment types that could replace Ethereum and Bitcoin as the “next big thing”. These alternatives include web3 products, NFTs, and meme coins. This ensures that Japanese investors can be more selective when it comes to deciding what to invest in. It also opens the door for many new and exciting crypto startup projects. 

SushiSwap, for example, is a decentralized cryptocurrency exchange launched in 2020. It operates on multiple blockchains, offering decentralized trading, automated market-making, and yield farming. The platform uses a native token, SUSHI, for governance and rewards. SushiSwap’s relevance aligns with the country’s interest in blockchain technology and decentralized finance. The platform’s approach to decentralized trading and governance could potentially influence future DeFi developments in Japan.

PassPay K.K., a blockchain startup based in Japan was established to tackle challenges encountered in the use of cryptocurrency daily. The firm has created a payment platform known as “JPYW,” which is a stablecoin tied to the Japanese Yen aimed at resolving financial issues experienced by foreign residents in Japan. PassPay’s main offering is the PassPay Wallet, a mobile application that enables users to handle “JPYWs” as well as various cryptocurrencies and NFTs across different blockchain networks. The company has established partnerships with the EOS Network and RigSec to strengthen its blockchain infrastructure and security solutions strategy. PassPay’s goal is to connect finance with digital assets by expanding JPY stablecoin use cases and creating applications, for a more integrated digital experience. 

Nuts Finance, also known as Thetanuts Finance, is a decentralized platform for altcoin option trading. The platform offers unique yield opportunities through multiple channels. Users can earn from option premiums by selling out-of-money European cash-settled options and lending interest by depositing tokens into the platform’s Lending market. Thetanuts Finance operates using basic Vaults, Basic Vault LP Tokens, and an AMM to create a comprehensive option for trading. The platform’s native token NUTS serves as a governance token, allowing holders to participate in decision-making processes. By staking NUTS to receive veNUTS, users can engage in “gauge voting”, contributing to the platform’s long-term objectives of decentralization.

bitFlyer, founded in 2014, is one of Japan’s largest cryptocurrency exchanges. With 2.5 million users, it offers a platform for buying, selling, and trading cryptocurrencies. bitFlyer has since expanded internationally to the United States and Europe, processing a large portion of Bitcoin transactions in Japan. bitFlyer has its own blockchain technology called Miyabi and introduced features like cryptocurrency payments at retailers and blockchain-based voting. bitFlyer’s diverse offering and market presence make this crypto startup a key player in Japan’s crypto sector.

Synodus is a software development company that has a strong focus on blockchain implementation. With over 300 employees, the company offers a wide range of services including custom web and mobile app development, low-code development, and data analytics. Synodus partners with leading companies across various industries to build successful software solutions. Their expertise runs across multiple technologies, including blockchain, artificial intelligence (AI), and IoT development. Synodus’s mission is to shape the digital future by working with market leaders and visionaries, with the hope of positioning itself as a key player in the Asian tech sectors.

As a founding entity of the Cardano blockchain, Emurgo plays a crucial role in driving the adoption of Cardano’s web3 ecosystem. The company provides products and services to support blockchain technology implementation. Emurgo has gone on to establish key partnerships with several tech giants like Huawei Cloud, launching innovative products such as the Anzens USDA stablecoin. Emurgo has seen the company make strategic investments in various countries, including Africa and the Middle East. The company’s diverse tech stack and focus on web3 adoption position it as a significant player in Japan’s blockchain ecosystem.

Vauldex is a company that focuses on web development and custom software solutions with offices in Fukuoka, Japan, and Cebu City, Philippines. This small startup specializes in web development and providing services for clients in the financial sector such as cryptocurrency exchanges and insurance companies. Their team consists of 50 to 249 members who excel in platform design, user interface planning, and ensuring security measures are implemented effectively. With its proficiency in managing projects and achieving favorable results, Vauldex stands out as a key player in Japan’s blockchain industry. 

Curvegrid Inc. is a software company based in Tokyo that was established in 2017 by Jeff Wentworth and William Metcalfe, both are alumni of Waterloo University. Their main product called MultiBaas acts as a middleware for technology to streamline and speed up development across various blockchain platforms. Aside from MultiBaas, Curvegrid also developed NFTeapot, an app on Shopify dedicated to NFT sales. The company embraces a blend of Western business practices and has a team of just 11 employees. Curvedgrid is recognized for offering international co-op opportunities to students from the University of Waterloo and has been honored with the Impact in International Excellence award. They aim to empower students by providing experiences such as contributing to real-world projects and engaging with customers directly. Curvegrid’s earnings are estimated to be in the $10 million bracket.

Consensus Base Inc. is a blockchain technology company based in Tokyo, Japan. Led by CEO Hiroshi Shimo, the company provides consulting, system development, and educational services related to blockchain and distributed ledger technologies. Consensus Base has worked with major corporations, including SoftBank Corp., and has experience in addressing real-world business challenges through blockchain applications. The company’s expertise spans various aspects of blockchain technology, positioning it as a valuable resource for businesses looking to leverage distributed ledger solutions in Japan.

Apas Port is a web3 creative production company established in April 2023 through a decentralized autonomous organization (DAO). The company focuses on “kando”, which translates to emotional impact. The company hopes to provide an emotional impact to the world through its web3 business initiatives. The company’s goal is to expand blockchain technology into everyday life through various services including web3 strategy development, IP localization, influencer casting, and market analysis. Apas Port has partnered with Animoca Brands Japan and Cryptoys to introduce a new digital toy platform for Japanese collectors.

Double jump.tokyo is a leading web3 gaming company that specializes in blockchain game development, NFT solutions, and web3 technologies. The company’s key focus is on blockchain game development, NFT projects, and building blockchain infrastructure. The company gained recognition with games like My Crypto Hero, which has since gone on to become the world’s largest blockchain game. In August 2024, the company raised $10 million in a Series D funding round led by SBI Investment. The goal of Double jump.tokyo is to facilitate the mainstream adoption of NFTs and blockchain technologies in the gaming sector globally.

Soramitsu is a Japanese blockchain company known for its work on digital currencies and payment systems. Founded in 2016, the company has gained prominence through its collaboration with central banks and financial institutions. Soramitsu played a key role in developing Cambodia’s Bakong digital payment system and is involved in similar projects across Southeast Asia. The company is now working on a cross-border payment platform leveraging stablecoins and CBDCs, aiming to improve international remittances. With partnerships including Mitsubishi UFJ Trust and Banking, Soramitsu is positioned as a leader in blockchain-based financial solutions.

Final thoughts 

The success of these twelve startups can be attributed to the Japanese government’s support of the crypto industry. The country has established clear regulations for cryptocurrencies earlier than many other countries, which has provided a stable environment for entrepreneurs and investors. The government recently announced a five-year policy for startup development, which aims to boost Japan’s startups, particularly in areas like web3 gaming, decentralized finance, and blockchain development. Japan as plans to introduce a regulatory framework allowing startups to raise funds through crypto assets, reflecting the government’s ongoing support for crypto businesses.